Ann: Funds Under Management - December 2021, page-165

Hi @PeterOnWestbury

It is no laughing matter. Magellan is the only Fund Manger that has just lost another $AUD1.17B in FUM for January 2022 having invested in Netflix (assuming they are still holding the stock). Netflix has become Magellan's 3rd largest holding in in the latest Fund numbers released and its largest detractor.

The repercussions of this are lower FUM performance compared to peers and lower earnings from 0.74% average management fees. The fall in FUM Netflix contributes is 1.8% and the $AUD1.17B drop in FUM on management fees lowers annualised earnings by $AUD8.7M, just for one month of movement.

Here is the calculation for FUM loss:
$A64.931B in Global Equity FUM
Magellan holds 5.3% of Netflix in its Global Equity Portfolio ($AUD3.44B in FUM)
Netflix has fallen 34% after earnings announcement last week ($AUD3.44B - 34% = $AUD2.2704B)

To your question on who else owns Netflix:
5.3% Magellan
1.6% Munro Partners
0% Hyperion (Hyperion could have a small holding)
0% GQG Partners

The question for me is, has Magellan learnt the lessons from its BABA and Ten Cent investments and sold, or are they holding onto their Netflix position? Have they learnt enough to know when to anticipate future falls in other portfolio positions.

I know these things take time to wash out, but early signs do not look good.

Best of Luck
Lost